03 Aug Undervalued and Unappreciated Uninsured Auto Insurance Calls
For some time now there’s been an aversion by several of the large auto insurance carriers to purchasing uninsured auto insurance calls. Part of the reason may be the greater complexity state to state regarding the rules and regulations of selling these policies to uninsured drivers. It may be management thinking it’s more “efficient”. However, the carriers have much to learn from many insurance agencies that are basking in a field day of uninsured auto insurance sales.
Agencies that are used to working with uninsured drivers just can’t get enough of these calls, as they wind up selling policies to a high percentage of the calls they do get… It’s not too hard to understand. Insured motorists are usually shopping for a lower premium which is not a “do or die” proposition. As a matter of fact, many insured drivers find that getting a better price, for the same coverage they currently have, is often very hard to find. So it can take a lot of calls and much “quoting” to end up with a new policy sale. But, this isn’t the case with uninsured calls… Agencies who serve uninsured drivers will often see a cost-per-policy of well under $100.
Those who are uninsured, by definition, need insurance now. They want to be able to get their car or one they are buying on the road and the sooner the better. Price is often not the #1 consideration; it’s getting the coverage that’s important. Being less price sensitive and more prone to making a “buying” decision, the uninsured caller is, for many Agents, a better prospect than an insured motorist.
What’s happened in the call market is that the reluctance of carriers to take uninsured calls has driven the value of these calls down and reduced the number of obvious buyers to far fewer. It’s encouraging to see several carriers beginning to reassess this situation. We’re aware of several large carriers who are beginning to put their toes back into the uninsured call waters. This is a positive step for everyone involved. It better serves consumers, balances the inventory in the call market and is “the right thing to do”. We welcome this trend back to appreciating the uninsured motorist as just a motorist and being offered the choices they deserve.